‘El Pais’ are apparently reporting that an unnamed government source has said that further hikes in income tax and cuts in expenditure on pensions could be in the pipeline as a measure to avoid Spain asking for a bailout as the country struggles to meet its budget deficit target.
The government needs to reduce its deficit to 6.3% of GDP by the end of 2012 and despite recent VAT and personal income tax hikes, tax revenues have still fallen.
